 Legacy vs. Blended Retirement Which retirement system is right for you? Imagine that this represents the path of your military career and retirement. On the left is the Legacy Retirement System. On the right, the new Blended Retirement System, or BRS. The Legacy System has served the DOD well since the late 1940s. BRS, however, provides additional options to attract and manage a military force in an evolving global economy. It goes into effect in January 2018. Let's see how the two systems compare as you arrive at the 20-year mark of your career. Both the Legacy and Blended Retirement System provide monthly retired pay after serving at least 20 years, or obtaining 20 qualifying years in the National Guard or Reserve. Under the Legacy Retirement System, your monthly retired pay is computed like this. 2.5% times your years served times your base pay at retirement, so 20 years equates to 50%. With BRS, the multiplier is reduced to 2%. Times your years served times your base pay at retirement, so 20 years equates to 40%. For National Guard and Reserve, both retirement formulas are essentially the same, but to determine your equivalent years of active service, divide your retirement points by 360%. With both plans, if you contributed to the Thrift Savings Plan, you'll have that too, along with earnings on those investments. Under the Legacy Retirement System, you have not received any government contributions to your TSP. Under BRS, at a minimum, the government has contributed with the amount of 1% of your basic pay to your TSP. Plus, if you have contributed to the TSP, you'll have that along with government matching funds of up to 5% of your basic pay and any earnings on those investment. To learn more, visit the blended retirement system resource website, take the BRS opt-in course, or visit your installation's personal financial counselor. Legacy vs. blended retirement, which retirement system is right for you?